The trial balance before adjustment of Taylor Swift Inc. shows the following balances.
Dr. Cr.
Accounts Receivable $90,000
Allowance for Doubtful Accounts 1,750
Sales Revenue (all on credit) $680,000
Instructions Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,700 credit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.
No. Account Titles and Explanation Debit Credit

Answers

Answer 1

Answer:

A. Dr Bad Debt Expense$5,350

Cr Allowance for Doubtful account$5,350

B. Dr Bad Debt Expense $2,800

Cr Allowance for Doubtful account$2,800

Explanation:

Preparation of the journal entry for the estimated bad debts

A. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:

Dr Bad Debt Expense$5,350

Cr Allowance for Doubtful account$5,350

[(4%*90,000)-1,750]

B. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:

Dr Bad Debt Expense $2,800

Cr Allowance for Doubtful account$2,800

[(5%*90,000)-1,700]


Related Questions

Which of the following statements is most accurate regarding sufficient and appropriate documentation?
A. Audit documentation is the property of the client, and sufficient and appropriate copies should be retained by the auditor for at least 5 years.
B. Sufficient and appropriate documentation should include evidence that it has been reviewed.
C. Accounting estimates are not considered sufficient and appropriate documentation.
D. If additional evidence is required to document significant findings or issues, the original evidence is not considered sufficient and appropriate and therefore should be deleted from the working papers.

Answers

Answer:

A

Explanation:


The clear, broad, underlying industry category or market sector of an organization's offering defines its
O shareholders.
O objectives
O culture
Ο Ο
business

Answers

Explanation:

thats difficult

A T-bill quote sheet has 90-day T-bill quotes with a 5.77 ask and a 5.71 bid. If the bill has a $10,000 face value, an investor could sell this bill for _____.
a. $9,857.25
b. $9,855.75
c. $9,859.21
d. $10,000

Answers

Answer:

a. $9,857.25

Explanation:

Price = Face value * (1 - Bid*Days/360)

Price = $10,000 * (1 - 5.71%*90/360)

Price = $10,000 * (1 - 5.71%*0.25)

Price = $10,000 * (1 - 0.014275)

Price = $10,000 * 0.985725

Price = $9,857.25

Current assets for two different companies at fiscal year-end are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company. Account Company 1 Company 2 Cash $ 13,000 $ 11,000 Raw materials inventory — 46,750 Merchandise inventory 49,750 — Work in process inventory — 34,000 Finished goods inventory — 54,000 Accounts receivable, net 58,000 72,000 Prepaid expenses 2,500 500 Required: 1. Identify which set of numbers relates to the manufacturer and which to the merchandiser. 2a. & 2b. Prepare the current asset section for each company from this information.

Answers

Answer:

Part 1

Manufacturer = Company 2

Merchandiser = Company 1

Part 2

Current Assets Section for Company 1

Current Assets                                            $

Merchandise Inventory                           41,500

Accounts Receivable, Net                     60,000

Prepaid Expenses                                    5,000

Cash                                                          7,000

Total Current Assets                              113,500

Current Assets Section For Company 2

Current Assets                                           $

Raw Materials Inventory                        38,500

Work In Process Inventory                    28,000

Finished Goods Inventory                     48,000

Accounts Receivable, Net                     70,000

Prepaid Expenses                                     1,000

Cash                                                         5,000

Total Current Assets                             190,500

Explanation:

Note : I have attached the full question as an image below !

Mrs. Sarr operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Sarr should shut down her business in the short run but continue to operate in the long run.
A. True
B. False

Answers

Answer:

B. False

Explanation:

Given that

Current market price = $8.10

Average variable cost = $8

And, the average total cost = $8.25

As we can see that the current market price is more than the average variable cost so it would be operate in the short run

Also the total cost is more than the current market price so it would be shut down in the long run

Therefore the given statement is false

Xercise Cycles Company has provided its year ended accounts receivables that were uncollected. The Controller has asked you to help prepare the Aging of Accounts Receivable Schedule and the corresponding journal entries. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
1) Calculate the number of days unpaid, USING THE EXCEL DAYS FUNCTION (fx).
2) Use the information above to complete the Aging of Accounts Recievable Schedule Below.
Create a formula for each age category, using the Excel IF and AND FUNCTION (fx) to determine where each customer amount belongs.
3) Prepare the adjusting journal entry for recording bad debt expense if the allowance for doubtful accounts had the following unadjusted balance:
4) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:

Answers

Answer:

In the number of days unpaid column (E8), input the formula; "=DAYS(D8, C8)" then copy it down to the last item on the table.

Explanation:

Answering just the first question, the DAYS function is used to calculate the difference between day timelines. The function accepts two parameters, the first date which is the current date we are subtracting from, and the second date which is the previous date.

Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts $740,000
Shop direct labor 500,000
Shop and repair equipment depreciation 40,000
Shop supervisor salaries 133,000
Shop property taxes 22,000
Shop supplies 10,000
Advertising expense 20,000
Administrative office salaries 71,400
Administrative office depreciation expense 6,000
Total costs and expenses $1,542,400
The average shop direct labor rate is $20 per hour.
Determine the predetermined shop overhead rate per direct labor hour.

Answers

Answer:

$8.20/Direct Labor hours

Explanation:

Cost of performing engine repair work = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies

Cost of performing engine repair work = $40,000 + $133,000  + $22,000 + $10,000

Cost of performing engine repair work = $205,000

Direct Labor Hours = Direct Labor/Direct Labor rate

Direct Labor Hours = 500,000/$20 per hour

Direct Labor Hours = 25,000 hours

Predetermined shop overhead rate per direct labor hour = $205,000 / 25,000 Hours = $8.20/Direct Labor hours

A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $55 instead

Answers

Answer:

$58.3

Explanation:

Interest = principal x interest x time

$55 x 0.06 x 1 = $3.3.

Amount = principal + interest

= $55 + $3.3. = $58.3

Your SWOT analysis reveals no obvious options for growth with your current product lines. So you decide to use some retained earnings the firm has been saving and launch new product lines. After careful analysis you decide to launch a line of battery chargers and, separately, a line of ceiling fans. Which corporate-level strategy are you pursuing

Answers

Answer:

Unrelated diversification.

Explanation:

Analyzing the information above, it is correct to say that the company is using the corporate level strategy of unrelated diversification.

This strategy occurs when a company decides to expand its product line by diversifying products that are not related to each other, as is the case above, where it is intended to launch a line of battery chargers and separately a line of ceiling fans. As these products do not correlate, the company is looking to start its activities in different types of market, which can be configured as a positive strategy for market gain and greater profitability for the company.

Dollar General operates midsized retail stores in rural towns. It has been expanding the variety of products available in its stores. Some locations now offer fresh produce and an increased assortment of fresh or frozen food items. Dollar General hopes the addition of new products will lead existing customers to purchase more items when they shop, which will in turn increase revenues for the chain. This is an example of the _______ strategic alternative according to Ansoff's matrix.

Answers

Answer:

product development

Explanation:

The product development strategy is a strategy where the new products would be developed for the pre-existed market or for the present customers. As in the given situation, since dollar general produced for its existing customers

Therefore as per the given situation it is an example of product development

You would like to lock in the selling price on 50,000 bushels of wheat, which you plan to harvest and deliver to the market in September. The September futures price quote is currently 899?4. If you write September futures contracts on your wheat, you will be guaranteed a total price of ________ for your crop. Each contract is quoted in cents and 1/8ths of a cent per bushel with a contract size of 5,000 bushels.
a. $45.637.50.
b. 50 $541650.00.
c. $449750.00.
d. $297700.50.
e. $2.971.000.

Answers

Answer:

c. $449750.00.

Explanation:

1/8 of 10 lots of bushels of 5,000 per lot = 1.25

Therefore, the price quote of 899'4 cents is written as 899'4+1.25 = $8.995

Total value = Wheat(bushels) * Price Quote

Total value = 50,000 * $8.995

Total value = $449,750

Grimaldi Chocolates projects its factory rent to be $8,000 in July when 4,000 pounds of candy are expected to be produced. If rent is a fixed cost, and if production is expected to increase to 6,000 units in August, what is the expected cost of rent in August

Answers

Answer:

$8,000

Explanation:

With regards to the above information, the expected cost of rent in August is $8,000. This is because the $8,000 is fixed in total.

We know that fixed costs are those costs that do not vary with the level of output. Invariably, it means they remained the same as activity level or output changes.

Although, production increases to 6,000 units in August from 4,000 candy pounds of candy that are expected to be produced in March, yet, the fixed cost of $8,000 would remain the same whether or not production increases or decreases.

On January 1, 2013, Springs Industries issued $18,000,000 of 10% ten-year bonds at 102. The bonds are callable at the option of Springs at 104. Springs pays interest annually and has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). On December 31, 2019, Springs called in $6,000,000 of the bonds. Ignoring income taxes, Springs should report a gain or loss of:_________

Answers

Answer:

Springs should report a loss of $204,000

Explanation:

To be redeemed Premium on bonds payable = 6,000,000 * 2% = $120,000

The amortization of bond premium (annual) = 120,000/10 = $12,000

Bonds premium amortized in 7 years (From 2013 to 2019) = 12,000 * 7 = $84,000

Unamortized bond premium = 120,000 - 84,000 = $36,000

Carrying value of bonds = Face value of the bonds + un-amortized bond premium at the redemption date = 6,000,000 + 36,000 = $6,036,000

Redemption price of bonds = 6,000,000 * 104% = $6,240,000

Loss on bonds redemption = Redemption price - Carrying value of bonds = 6,240,000 - 6,036,000 = $204,000. So, Springs should report a loss of $204,000.

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 48,000 shares of common stock in exchange for $480,000 in cash. Purchased equipment at a cost of $58,000. $19,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $114,000. The company uses the perpetual inventory system. Credit sales for the month totaled $210,000. The cost of the goods sold was $88,000. Paid $6,800 in rent on the warehouse building for the month of March. Paid $7,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $88,000 on account for the merchandise purchased in 3. Collected $73,000 from customers on account. Recorded depreciation expense of $2,800 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances.

Answers

Answer:

Wainwright Corporation

1. T-accounts:

Cash

Accounts Titles                  Debit     Credit

Common stock             $480,000

Equipment                                        $19,000

Rent Expense                                      6,800

Prepaid insurance                               7,800

Accounts payable                             88,000

Accounts receivable        73,000

Balance                                         $431,400

Common Stock

Accounts Titles                  Debit     Credit

Cash                                               $480,000

Equipment

Accounts Titles                  Debit     Credit

Cash                                $19,000

Notes payable                  39,000

Balance                                          $58,000

Notes Payable

Accounts Titles                  Debit     Credit

Equipment                                      $39,000

Inventory

Accounts Titles                  Debit     Credit

Accounts payable            $114,000

Cost of goods sold                           $88,000

Balance                                               26,000

Accounts Payable

Accounts Titles                  Debit     Credit

Inventory                                          $114,000

Cash                                  $88,000

Balance                               26,000

Cost of Goods Sold

Accounts Titles                  Debit     Credit

Inventory                          $88,000

Sales Revenue

Accounts Titles                  Debit     Credit

Accounts receivable                      $210,000

Accounts Receivable

Accounts Titles                  Debit     Credit

Sales revenue                $210,000

Cash                                                    $73,000

Balance                                                137,000

Rent Expense

Accounts Titles                  Debit     Credit

Cash                                  $6,800

Prepaid Insurance

Accounts Titles                  Debit     Credit

Cash                                  $7,800

Depreciation Expense

Accounts Titles                    Debit     Credit

Accumulated depreciation $2,800

Accumulated Depreciation - Equipment

Accounts Titles                  Debit     Credit

Depreciation Expense                     $2,800

2. Trial Balance

As of April 30, 2021:

Accounts Titles              Debit          Credit

Cash                            $431,400

Common stock                                 $480,000

Equipment                     58,000

Notes payable                                      39,000

Inventory                       26,000

Accounts payable                                26,000

Cost of goods sold       88,000

Sales revenue                                    210,000

Accounts receivable   137,000

Rent expense                 6,800

Prepaid insurance          7,800

Depreciation expense   2,800

Accumulated depreciation                   2,800

Totals                       $757,800       $757,800

Explanation:

To prepare T-accounts, just follow a simple step by posting each transaction to two accounts or more as the case may.  After all transactions have been posted, balance the accounts by identifying the differences between the two sides of each account.  Use the balances (where only one transaction is recorded in an account, that becomes the balance) to extract the Trial Balance.

A risk management program must be implemented and periodically monitored to be effective. This step requires the preparation of a risk management policy statement. The cooperation of other departments is also necessary. a. What benefits can the firm expect to receive from a well-prepared risk management policy statement

Answers

Answer: The ability to see risks that are not predicted and accessing funds from financial institutions

Explanation:

Here are some of the benefits of well-prepared risk management policy statement;

1) The ability to see risks that are not expected; a team of experts would be engaged to identify and give an overview of all forms of risk that could be possibly involved.

2) The organization attracts credit easily; Organisations attract credit from financial institutions when they are able to provide assessments that they carried out regarding risks. This gives the client's confidence that they can entrust their finance to the organization due to the firm have considered all forms of pending failures and that which would occur.

Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend s company and is willing to pay $30 just to spend an evening with her. If Jia does not go out to the restaurant, she will eat at home, using groceries that cost her $8.
a. Calculate Jia's cost associated with going out to dinner with her friend.
b. Calculate Jia's benefits associated with going out to dinner with her friend.

Answers

Answer:

a. Jia's cost associated with going out to dinner with her friend

= $58

b. Jia's benefit associated with going out to dinner with her friend

= $47

Explanation:

a) Data and Calculations:

Expected cost of meal =  $40

Tips (20%)                             8

Transport to & from =         10

Total cost of going out = $58

Benefits with going out:

Value of restaurant meal =     $25

Amount Jia is willing to pay = $30

Less of eating at home            ($8)

Total benefits with going out $47

When McDonald's sells cheeseburgers in India, there is absolutely no beef or pork used. The McDonald's Menu in India features Indian burgers that are 100 percent vegetarian. India is predominantly a Hindu country, and Hindus are strict in terms of not eating beef because they consider the cow as a holy manifestation of the divinity. This scenario is an example of _______.

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) product innovation

b) product standarization

c) product variation

d) product adaptation

And the correct answer is the option D: Product adaptation.

Explanation:

To begin with, the term of "Product Adaptation" in the field of marketing and management is known to refer as the method that is necessary to use in order to adapt a company's strategy to a target audience that tends to be quite different that the usual audience. So in this case the most important thing to have in mind when applying a strategy like this is that the focus will be in the huge difference that the consumers have according to the regular ones, so when the managers see the difference they will be able to focus on a better product to give the consumers.

Assume Italy and Chad can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries. Each farmer in Italy can produce 10 t of grain or 5 t of dates in a season. Each farmer in Chad can also produce 10 t of grain or 25 t of dates.
1. Which country has the absolute advantage in producing dates?
A. Italy.
B. Chad.
C. Neither.
2. Which country has the absolute advantage in producing grain?
A. Italy.
B. Chad.
C. Neither.
3. Which country has the competitive advantage in producing dates?
A. Italy.
B. Chad.
C. Neither.
4. Which country has the comparative advantage in producing grain?
A. Italy.
B. Chad.
C. Neither.

Answers

Answer:

chad

neither

chad

Italy

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

The opportunity cost of  Italy in producing one unit of grain = 5/10 = 0.5t dates

The opportunity cost of  Italy in producing one unit of dates = 10/5 = 2grains

The opportunity cost of  Chad in producing one unit of grain =  25/10 = 2.5 dates

The opportunity cost of  Chad in producing one unit of dates = 10/25 = 0.4 grains

Italy has a comparative advantage in the production of grains while Chad has a comparative advantage in the production of dates

A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries. Chad produces 25t of dates while Italy produces 5t of dates, this shows that Chad has an absolute advantage in the production of dates. Both Italy and Chad produces the same quantity of grains so neither have an absolute advantage in the production of grains.

On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Exercise 8-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. (Enter all amounts as positive values.)

Answers

Answer:

Year 1 = $84,000Year 2 = $78,400

Explanation:

Double declining means that the asset is depreciating at double the rate that it would with straight method:

Straight line depreciation = 280,000 / 5 years

= $56,000

Rate = 56,000 / 280,000 = 20%

Double declining will be:

= 20 * 2 = 40%

Year 1 Depreciation:

= 40% * 280,000 * 9/12 months

= $84,000

Year 2 Deprecation:

= 40% * Net book value

= 40% * (280,000 - 84,000)

= $78,400

Which of the following is not true about communisim? 1. it was outlined by Karl Marx in the famous text "Communist Manifesto". 2. It has a weak central government 3. Because the government makes production decisions, there tends to be a lot of shortages and surpluses. 4. There is public ownership of all enterprises.

Answers

Which of the following is not true about communisim? 1. it was outlined by Karl Marx in the famous text "Communist Manifesto". 2. It has a weak central government 3. Because the government makes production decisions, there tends to be a lot of shortages and surpluses. 4. There is public ownership of all enterprises.

You are analyzing a large stable company. For the year ending 12/31/2015 the company reported earnings of $58,900 and book value at the end of 2015 was $371,700. You expect earnings to grow at 5% a year in perpetuity, and the dividend payout ratio of 70% to continue. The company borrows at 8%, and has a cost of equity of 12%. The company has 25,000 shares outstanding. What is your estimate of price per share using the dividend discount model at 12/31/2015

Answers

Answer:

$24.74

Explanation:

Total earnings for the year ending 12/31/2015= $58,900

dividend payout ratio=70%

current year total dividends= $58,900*70%

current year total dividends=$41,230.00

current dividend per share=current year total dividends/shares outstanding

current dividend per share=$41,230.00/25,000

current dividend per share=$1.6492

expected dividend=current dividend per share*(1+growth rate)

growth rate of dividends forever=5%

expected dividend=$1.6492*(1+5%)

expected dividend=$1.73166

share price=expected dividend/(cost of equity-growth rate)

cost of equity=12%

share price=$1.73166/(12%-5%)

share price=$24.74  

During its first year of operations, Fisher Plumbing Supply Co. had sales of $480,000, wrote off $7,700 of accounts as uncollectible using the direct write-off method, and reported net income of $52,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/2% of sales would be uncollectible.

Answers

Answer:

Sales                                       $480,000

Less: Expenses (Bal Figure)  $419,500

Less: Write Off Account         $7,700    

Net Income                             $52,800

If Allowance Method Is Used  

Sales                                                                 $480,000

Less: Expenses                                                $419,500

Less: Write Off Account (1.5% of 480,000)    $7,200

Net Income                                                       $53,300

The 2017 Annual Report of Tootsie Roll Industries contains the following information.
(in millions) December 31, 2017 December 31, 2016
Total assets $930.9 $920.1
Total liabilities 197.1 208.6
Net sales 515.7 517.4
Net income 80.7 67.2
Compute the following ratios for Tootsie Roll for 2017.
(a) Asset turnover (Round answer to 3 decimal places, e.g. 0.851 times.)
(b) Return on assets (Round answer to 2 decimal places, e.g. 4.87%.)
(c) Profit margin on sales (Round answer to 2 decimal places, e.g. 4.87%.)

Answers

Answer:

1.108 times

8.66%

16%

Explanation:

A. 2017 Asset turnover

Net sales / Average total assets

= 515.7/[(930.9 + 0)/2]

= 515.7/465.45

= 1.108 times

B. Return on assets

Net income/Total assets

= 80.7/930.9

= 0.0866 × 100

= 8.669%

C. Profit margin on sales

= Net income/Net sales

= 80.7/515.7

= 0.16 × 100

= 16%

1.Which of the following products would it not be necessary to develop HACCP flow chart?
A)Caesar salad
B)Tuna salad
C)Seafood salad
D)Citrus fruit salad

2. Which of the following criteria is least important when determining a food operation’s need for a particular piece of equipment? Will the equipment:

A)Produced a significant saving in labor and material?
B)Make the facility more attractive to customers?
C)Result in improved quality of food?
D)Improve sanitation?

Answers

Answer:

1. The product which is not necessary to develop HACCP flow chart for is:

A) Caesar salad

2. The least important criterion when determining a food operation's need for a particular piece of equipment is whether the equipment will:

B) Make the facility more attractive to customers?

Explanation:

These two regulatory bodies run the HACCP programs.  The Food and Drug Administration (FDA)regulates the program for juice, while the United States Department of Agriculture (USDA) regulates the program for meat.  Their purposes are to ensure food safety and protect public health.  A HACCP flow chart diagrammatically depicts the process flow of a food operation, starting from the incoming materials to the end product for the customer.

Answer:

A) Caesar salad is necessary to develop HACCP flow chart.

B) Will the equipment make the facility more attractive to customers? is the least important criteria when determining a food operation’s need for a particular piece of equipment

Explanation:

1.

A HACCP flow chart refers to a graphical representation of the complete manufacturing process of the business of food. This chart contains information regarding the raw material, serving the finished products, etc.

Caesar salad is necessary to develop a HACCP flow chart.

2.

To determine a need for food operation for a particular piece of equipment, it's not necessary to check if the equipment can make the facility more attractive to customers

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Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.
Products Sales Revenue Traditional ABC
Product 540X $195,000 $56,000 $46,600
Product 137Y 158,000 55,000 37,000
Product 249S 84,000 10,000 37,400
Instructions
a) For each product line, compute operating income using the traditional costing system.
b) For each product line, compute operating income using the activity-based costing system
c) Using the following formula, compute the percentage difference in operating income for each of the product lines of Ayala:{Operating Income (ABC)-Operating Income traditional cost)]divided operating Income (traditional cost)(round the percentage to two decimals).

Answers

Answer:

a. Operating income of Product 540X under traditional costing system: Operating income = Revenue - Operating cost = $195,000 - $56,000 = $139,000

Operating income of Product 137Y under traditional costing system: Operating income = Revenue - Operating cost = $158,000 - $55,000 = $103,000

Operating income of Product 249S under traditional costing system: Operating income = Revenue - Operating cost = $84,000 - $10,000 = $74,000

b. Operating income of Product 540X under  activity-based costing system: Operating income = Revenue - Operating cost = $195,000 - $46,600 = $148,400

Operating income of Product 137Y under  activity-based costing system: Operating income = Revenue - Operating cost = $158,000 - $37,000 = $121,000

Operating income of Product 249S under  activity-based costing system: Operating income = Revenue - Operating cost = $84,000 - $37,400 = $46,600

c. % of the difference between the operating income of Product 540X under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100

= $148,400 - $139,000/$139,000 * 100

= $9,400/$139,000 * 100

= 0.0676258992805755 * 100

= 6.76%

% of the difference between the operating income of Product 137Y under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100

= $121,000 - $103,000/$103,000 * 100

= $18,000/$103,000*100

= 0.1747572815533981 * 100

= 17.48%

% of the difference between the operating income of Product 249S under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100

= $46,600 - $74,000/$74,000 * 100

= -$27,400/$74,000 * 100

= -0.3702702702702703 * 100

= -37.03%

Steelcase has received orders of 2400, 2200, 2700, and 2500 units of a special-purpose panel for each of the next four months. SC can meet these demands by producing the panel, by drawing from its inventory, or by using any combination of the two alternatives. The production costs during each of the next four months are projected to be $74, $75, $76, and $76.5 per unit. Because costs are rising each month, SC might be better off producing more panel than it needs in a given month and storing the excess. Production capacity, though, cannot exceed 4000 units in any one month. The monthly production is finished at the end of the month at which time the demand is met. Any remaining panel is then stored in inventory at a cost of $1.2 per panel for each month that it remains there. If production level is increased from one month to the next, then the company incurs a cost of $0.5 per unit of increased production to cover the additional labor and/or overtime. Each unit of decreased production incurs a cost of $0.3 to cover the benefits of unused employees. The production level during the previous month was 1800 units, and the beginning inventory is 1000 units. Inventory at the end of the fourth month must be at least 1500 units to cover anticipated demand. Formulate a production plan for SC that minimizes the total costs over the next four months

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

The Production Planning of the Steel Case:

Demand (units):

Month 1:  2400

Month 2:  2200

Month 3:  2700

Month 4:  2500

Production Cost ($/unit):

Month 1:  74

Month 2:  75

Month 3:  76

Month 4:  76.5

Inventory cost ($/panel):

Month 1:  1.2

Month 2:  1.2

Month 3:  1.2

Month 4:  1.2

Starting Inventory = 1000

Ending Inventory at the end of 4th month = 1500

Starting Production Level = 1800

Cost of changing production level = $0.5/unit (increase)

                                                         = $0.3/unit (decrease)

Decision Variables:

Let Pn be the production in the month n.

[tex]I_{n}[/tex] be the inventory at the end of month n.

[tex]I_{o}[/tex] be the initial inventory at the start of month 1.

Objective Function:

The production cost is given below:

74[tex]P_{1}[/tex] + 75[tex]P_{2}[/tex] + 76[tex]P_{3}[/tex] + 76.5[tex]P_{4}[/tex]

And the holding cost is given below:

1.2( [tex]I_{1} + I_{2} + I_{3}[/tex] )

And,

Constraints:

In order to meet the demand, we have the following constraints:

[tex]P_{1}[/tex] + [tex]I_{o}[/tex] [tex]\geq[/tex] 2400

[tex]P_{2}[/tex]  + [tex]I_{1}[/tex] [tex]\geq[/tex] 2200

[tex]P_{3}[/tex]  + [tex]I_{2}[/tex] [tex]\geq[/tex] 2700

[tex]P_{4}[/tex] + [tex]I_{3}[/tex] [tex]\geq[/tex]  2500

Now, considering the inventory level at the end of each month:

[tex]I_{o}[/tex] = 1000

[tex]I_{1}[/tex] = [tex]P_{1}[/tex] - [tex]I_{o}[/tex] - 2400

[tex]I_{2}[/tex] = [tex]P_{2}[/tex]  - [tex]I_{1}[/tex] - 2200

[tex]I_{3}[/tex] = [tex]P_{3}[/tex]  - [tex]I_{2}[/tex] - 2700

[tex]I_{4}[/tex] = [tex]P_{4}[/tex]  - [tex]I_{3}[/tex] - 2500

[tex]I_{4}[/tex] [tex]\geq[/tex] 1500

It is given that, at maximum 4000 units can be produced each month

So, we have the following constraints:

[tex]P_{n}[/tex] [tex]\leq[/tex] 4000 for n = 1, 2, 3 ,4

Also,

[tex]P_{n}[/tex] [tex]\geq[/tex] 0

[tex]I_{n}[/tex] [tex]\geq[/tex] 0

As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report:
JAN FEB MAR APR
Units produced 2,195 1,695 2,695 2,895
Hours per machine 310 188 385 309
Number of machines 4 6 5 4
Find the average of the monthly productivity figures (units per machine hour). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer:

The average of the monthly productivity figures (units per machine hour):

                                      JAN        FEB       MAR       APR

Units produced            2,195      1,695    2,695     2,895

Total machine hours   1,240       1,128      1,925     1,236

Average productivity   1.77        1.50        1.40      2.34

Explanation:

a) Data and Calculations:

Production report:

                                      JAN        FEB       MAR       APR

Units produced            2,195      1,695    2,695     2,895

Hours per machine        310          188        385        309

Number of machines        4              6            5            4

Total machine hours  1,240        1,128      1,925     1,236

b) Productivity, according to Organization for Economic Co-operation and Development (OECD), is the ratio between the output volume and the volume of inputs.  This means that productivity measures compute how efficiently production inputs are used to produce output.  It can be measured with respect to labor, capital, and other production inputs or in aggregate with respect to all production inputs.

Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2013, net credit sales totaled $4,900,000, and the estimated bad debt percentage is 1.90%. The allowance for uncollectible accounts had a credit balance of $46,000 at the beginning of 2013 and $42,000, after adjusting entries, at the end of 2013.
If the company uses the direct write-off method, what would bad debt expense be for 2013?

Answers

Answer:

$97,100

Explanation:

Calculation for If the company uses the direct write-off method, what would bad debt expense be for 2013

Beginning Balance $46,000

Add Bad debt expense for 2013

(1.90% x $4,900,000) $93,100

Less Ending balance ($42,000)

Bad debt Expense $97,100

Therefore If the company uses the direct write-off method, what would bad debt expense be for 2013 is $97,100

Return to questionItem 4 Required information Skip to question Retained earnings at the beginning of the period was $300. During the period, Kilgore Company earned revenue of $1,100 and incurred expenses of $400. Assuming dividends paid to stockholders were $200, the ending balance in retained earnings must have been:

Answers

Answer:

$800

Explanation:

The first task here is to determine the amount of net income recognized in the year which is the earned revenue minus incurred expenses as shown thus:

net income=earned revenue-incurred expenses

earned revenue= $1,100

incurred expenses=$400

net income=$1,100-$400=$700

retained earnings for the period=net income-dividends paid

dividends paid=$200

retained earnings for the period=$700-$200=$500

ending balance of retained earnings=beginning retained earnings+retained earnings for the period

beginning retained earnings=$300

ending balance of retained earnings=$300+$500=$800

Exchanged all of the securities for shares of preferred stock, which were not mandatorily redeemable. Market values at the date of the exchange were for the securities and per share for the preferred stock. The shares were retired immediately. What journal entries should record in connection with this transaction?

Answers

Answer:

The full question is as follows "The following accounts were among those reported on Good Corp.'s balance sheet at December 31, year 1: Available-for-sale securities (market value $140,000) $80,000 Preferred stock, $20 par value, 20,000 shares issued and outstanding 400,000 Additional paid-in capital on preferred stock 30,000 Retained earnings 900,000 On January 20, year 2, Good exchanged all of the available-for-sale securities for 5,000 shares of Good's preferred stock. Market values at the date of the exchange were $150,000 for the available-for-sale securities and $30 per share for the preferred stock. The 5,000 shares of preferred stock were retired immediately after the exchange. Prepare the general journal entry, without explanation, to record this event."

Date    General Journal Entry                                  Debit             Credit

            Preferred stock A/c                                   $100,000

             (5000*$20)          

            Add. paid-in capital on preferred stock   $7,500

             (30000 * 1/ 4)          

            Retained earnings                                     $42,500

                  Trading securities A/c                                               $140,000

                  Gain on exchange of securities                                $10,000

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